AØKK08323U Seminar: Behavioral Economics at Work

Volume 2015/2016
Education

M.Sc. of Economics
The seminar is primarily for students at the MSc of Economics

Content

In the past decades, a growing body of research has demonstrated that people’s behavior is not only influenced by economic incentives, but instead depends on a multitude of psychological motives, as well as on individual limitations in self-control, attention, and other biases. Since human decision making is ubiquitous in companies as well as other private and public organizations, such findings are highly relevant for understanding the functioning of these organizations. In this course, we will discuss how research in behavioral and organizational economics has enriched our understanding of people’s behavior in the workplace and other organizations. We will also discuss how a better knowledge of the psychological foundations of behavior can help improve compensation structures, organizational design, and public policy.

Learning Outcome

The following set of questions exemplifies the topics that we will discuss during the seminar:

  • How do economic incentives and psychological motives influence individual behavior and organizational performance? When do pecuniary incentives work and when do they trigger dysfunctional reactions?

  • What determines whether people feel compensated fairly? How do peers affect each other’s perceptions and behavior?

  • Do limitations in attention and self-control influence the effectiveness of organizational features such as deadlines or performance targets?

  • How do individual preferences and personality traits influence the types of jobs that we select into? How do present biases, loss aversion, and biased beliefs affect people’s job search strategies and workplace behavior?

  • Should policy makers take these aspects into account when reforming public policy? What is the right mix between traditional policy instruments and “nudge”-based approaches?

The following surveys give an introduction to the topic. Further references will be provided at the beginning of the course.

  • DellaVigna, S. (2009): “Psychology and Economics: Evidence from the Field”, Journal of Economic Literature, 47, 315-372.

  • Dohmen, D. (2014): “Behavioural Labour Economics: Advances and Future Directions”, IZA Discussion Paper No. 8263.

The seminar does not require specific previous knowledge of behavioral economics. However, students should have basic knowledge of microeconomic theory, experimental methods, and econometrics (basic courses taught at BA level).
The structure of the course will be as follows:
1. Introduction: The course will be introduced by 2 lectures in the beginning of the semester. In the lectures, we will discuss possible topics for the seminar papers and provide an overview of the required theoretical and empirical methods.
2. Commitment paper: after the introductory lectures, participants select a topic for their seminar paper and hand in a commitment paper.
3. Student presentation: there will be a two-day workshop in May where students present their seminar paper. Each student will also act as a discussant for one of the other workshop presentations.
4. Seminar paper: students are required to write a 12-page paper on a subject of their choice within one of the course’s main themes. A draft of the paper has to circulated 2 weeks before the workshop. The final paper has to be handed in within 2 weeks after the workshop presentations. The paper can take various forms. One possibility is to thoroughly analyze and discuss an influential article on the selected topic. A second possibility is that students perform their own empirical investigation, based on the data underlying the selected article or based on additional data that students assemble themselves. Third, students can propose a design for an experiment or other empirical investigation to address a new research question on their topic of interest. In the latter case, the teacher will assist students with the empirical design and analysis.


Introductory lectures: February 12 10-12 and 13.30-16.00
  • Category
  • Hours
  • Preparation
  • 185
  • Seminar
  • 20
  • Total
  • 205
Credit
7,5 ECTS
Type of assessment
Written assignment
A written seminar paper.

Included in the seminar is an oral presentation for the others participans at the seminar.
Presentation: 20 min + opponent: 10 min + floor discussion: 15 min
Exam registration requirements

Attendance on the seminar. The mandatory commitment paper and seminar paper have been handed in at deadline.

Aid

Al aids for the written seminarpaper.

For the oral presentation the slices for the presentation. The teather can specifiy what else is allowed.

Marking scale
7-point grading scale
Censorship form
External censorship
up to 20 % censorship at the seminarpaper
Exam period

Deadline for submission of commitment paper: March 1, 2016
Deadline for submission of draft paper to other participants: May 1, 2016
Workshop with student presentations (tbc): May 13 and 14, 2016


Deadline for submission of final paper: May 29 26, 2016 at 10 AM

For enrolled students more information about examination, exam/re-sit, rules etc. is available at the student intranet for Examination (English) and student intranet for Examination (KA-Danish).

Re-exam

Submission of a written assignment and an oral exam in which you may be examined in the presentations of the other students participating in the seminar during the enrolment period in question.

Criteria for exam assesment

The student must in a satisfactory way demonstrate that he/she has mastered the learning outcome of the course.